Tariffs And Trade Liberalization With Network Externalities
AbstractThis paper constructs a reciprocal market model of intra-industry trade in network goods to consider the implications of network externalities for an optimal tari policy and the welfare e ects of bilateral tari reductions. We show that the degree of network externalities nontrivially a ects the sign of the Nash equilibrium tari . Then, we prove that network externalities amplify the gains from tari reductions. These results help better understand the implications of traderelated issues in network industries.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 71.
Length: 20 pages
Date of creation: May 2011
Date of revision: May 2011
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Other versions of this item:
- Kenji Fujiwara, 2011. "Tariffs And Trade Liberalisation With Network Externalities," Australian Economic Papers, Wiley Blackwell, vol. 50(2-3), pages 51-61, 09.
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- Alberto Portugal‐Perez & José‐Daniel Reyes & John S. Wilson, 2010.
"Beyond the Information Technology Agreement: Harmonisation of Standards and Trade in Electronics,"
The World Economy,
Wiley Blackwell, vol. 33(12), pages 1870-1897, December.
- Portugal-Perez, Alberto & Reyes, Jose-Daniel & Wilson, John S., 2009. "Beyond the information technology agreement : harmonization of standards and trade in electronics," Policy Research Working Paper Series 4916, The World Bank.
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